PhonePe’s path to an IPO is a long one

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Editor's note: PhonePe is in the midst of an ambitious overhaul of its business with planned forays into quick commerce, wealth management and B2B technology infrastructure services. The Bengaluru-based payments startup is attempting to turn profitable in the 2023-24 fiscal year for an initial public offering, according to three people in the know, who asked not to be named. The company’s aim is to ensure that about 50% of its income comes from financial services and the rest is split among the other new businesses. The goal is to increase income by diversifying revenue streams and cut down on customer acquisition costs to break even. While there has been speculation that PhonePe might file for an IPO in the near future, given that the company shifted its domicile from Singapore to India, two of the three people cited above say that isn’t the case. “A timeline has been wrongly attributed to an IPO. As far as I know, PhonePe will only list after it becomes profitable. The financial services vertical will be key to achieve this goal, but a bulk of its …